Industrial License in Dubai
An industrial license in Dubai refers to a type of business license issued by the Department of Economic Development (DED) in Dubai. It allows companies to engage in industrial activities, such as manufacturing, production, assembly, and repair services. Obtaining an industrial license in Dubai is a requirement for setting up a manufacturing or production-based business in the city.
Industrial or manufacturing companies wanting to carry out business operations in the UAE must apply for an industrial license.
Though the main governing body of the industrial license is the Department of Economic Development, depending on the business activities and safety precautions required, you may need to seek approval from a few other government entities.
Activities Involved:
Some of the major activities are carried out across the industrial business sector in the UAE are:
- Import, Export, and Storage of Industrial Products
- Assembling and Packaging
- Oil and Gas Extraction
- Woodwork and Furniture Manufacturing
- Vehicles and Aircraft Manufacturing
- Processing of Raw Materials
- Repair and Maintenance
Activities That Require Special Permissions:
Much like the commercial license or professional license, certain activities under the industrial license need special permission from the government.
It follows:
- You need to seek approval from the Food Safety Department in order to legalize your operations that deal with manufacturing of edible goods.
Our clients can always rely on Business Link’s smooth and transparent PRO services for any special approvals.
Things To Keep In Mind:
The industrial license is slightly different than other licenses. If you’re looking to start a business in Dubai with an industrial license, these are a few key factors to keep in mind:
- must own a warehouse in the emirate as stated in the approval by DED
- Must have at least 10 employees/workers
- All machines used in the warehouse must be a minimum of 5 Horsepower.
- Minimum capital of AED 250,000
Benefits of the License:
The UAE provides investors with excellent perks to prolong their investments within the country while making business setup in the UAE a smooth ride.
Some perks of getting the industrial license are as follows:
- UAE freezones are tax-free areas for factories and warehouses
- Unparalleled access to logistical support and transportation services
- Affordable labor costs
- Discounts for electricity, water, and other essentials
- If your manufactured products are expected to strengthen the economy of the country, you will receive financial support
- If you have unique products, you can receive loans at a reduced rate
- Terms and conditions for resting space for industries and warehouses are made specially to benefit the business owner
Steps to Obtain the License:
The process of an industrial license is relatively lengthier than other licenses, but with Business Link’s expert assistance, these processes can be more manageable.
- The first step is to provide a business plan. This is important as obtaining an industrial license is generally unique in some cases – given the nature of the business. With a business plan, our consultants can better guide you on what approach to undertake.
- Decide where you want to set up. If you plan on setting up a business on the mainland, the DED will be the main governing body of your business and the issuance of your license. However, you must approach the respective free zone authority for a free zone business setup.
Once you obtain the initial approval for your business, you need to submit the following documents:
- Residence Visa Copy
- Passport Copy (if the investor is not a resident of the UAE)
- Power of Attorney (if the investor is not present in UAE, they may submit a virtual PoA)
- 3 Proposed Trade Names
- Warehouse Location
- Ejari
- Dubai Municipality Approval
- Civil Defense Approval
Along with this, depending on the nature of your business and what you’re manufacturing, you will be required to get approvals from relevant authorities to proceed legally with your application.
With the above submissions, the governing body will issue your industrial license. Along with your license, as the investor, you will be issued an Immigration Card, and if your business requires employees, they will be issued Labor Cards.